NATO discusses new €70bn aid package for Ukraine - Politico

NATO countries are considering launching a new large-scale financial support package for Ukraine worth about 70bn euros for military needs. Politico quoted four diplomats of the alliance as saying. According to preliminary plans, the decision may be officially announced at the NATO summit in Ankara, which is scheduled for July.

According to the sources, the initiative was previously put forward by Germany. It involves the creation of a new funding mechanism, which should increase transparency and make the distribution of costs more equitable among allies. It comes amid growing complaints from some countries who feel they are bearing a disproportionate financial burden in supporting Kiev.

A senior NATO diplomat said a key challenge was to cement long-term allied commitments to stable and more balanced aid to Ukraine.

Support for Kiev will be one of the central issues of the Alliance's July summit," the portal said.

Discussions continue within NATO on how to ensure sustainable funding. According to Alliance representatives, the discussion is taking place against the backdrop of changing war dynamics and attempts by allies to adapt the format of support. It is also noted that the US has limited new military assistance under current policy, focusing on arms supplies at the expense of allies.

The financing scheme under discussion suggests that some of the funds - around €30bn - could be drawn from the European Union's already agreed €90bn loan package for Ukraine. Another 40bn euros or so is planned to be raised through bilateral contributions from member states.

However, there are concerns within the Alliance that a tie-up with EU funds could reduce the motivation of individual countries to increase their own defence spending. Some diplomats stress that European states should not perceive the common loan as a substitute for direct aid.

Ukraine, for its part, insists that the new commitments should focus on priority areas - primarily air defence, production of drones and missiles, and supplies of longer-range ammunition. Ukraine's ambassador to NATO Alena Hetmanchuk said that until reliable security guarantees appear, Ukraine will rely on the financial support of its partners.

According to the Kiel Institute for the World Economy think tank, European countries sent Ukraine about 2bn euros a month in military aid between January and April, which is below the level of the previous period. At the same time, no military aid from the USA was recorded during this period of time.